Circuit City seeks incentives for wind-down
Business Law
Circuit City Stores Inc. is asking a U.S. Bankruptcy Court judge to allow it to give incentives to executives and other workers to stay with the company during the wind-down process, according to court filings.
The company said the bonuses are needed to dissuade the 154 employees from leaving before what was the nation's second-largest consumer electronics retailer closes for good.
Employee turnover threatens the wind-down plan and the company's ability to "maximize value for their estates and stakeholders," Richmond-based Circuit City said in the filing.
Circuit City has already had some key employees leave, including former chief financial officer Bruce H. Besanko, who will start in a similar role at OfficeMax Inc. on Feb. 16.
The company filed for Chapter 11 bankruptcy protection in November as it faced pressure from vendors, heightened competition and waning consumer spending. Last month Circuit City announced it would liquidate its 567 U.S. stores, cutting more than 34,000 jobs.
Going-out-of-business sales should last through March, after which the stores will be closed. A small staff will keep working at the corporate office through the process.
Under the company's proposal, 16 executives would split up to $2.3 million if they achieve specific target tasks such as staying within the wind-down budget and obtaining the sale of Circuit City's Canadian and Internet assets. The remaining non-managerial workers would share no more than $1.62 million.
Related listings
-
Exxon Mobil sets record with $45.2 billion profit
Business Law 01/30/2009Exxon Mobil Corp. on Friday reported a profit of $45.2 billion for 2008, breaking its own record for a U.S. company, even as its fourth-quarter earnings fell 33 percent from a year ago.The previous record for annual profit was $40.6 billion, which th...
-
Fallout begins after dismal holiday season
Business Law 12/30/2008The fallout from the horrific holiday season for retailers has begun, with the operator of an online toy seller filing for bankruptcy protection and more stores are expected to do the same — meaning more empty storefronts and fewer brands on store sh...
-
Fed designates CIT Group as bank holding company
Business Law 12/23/2008The Federal Reserve on Monday said it has approved CIT Group Inc. as a bank holding company, clearing a key hurdle for the firm to bolster its resources with loans and support from the government's financial rescue fund.The Fed's decision means the N...
Illinois Work Injury Lawyers – Krol, Bongiorno & Given, LTD.
Accidents in the workplace are often caused by unsafe work conditions arising from ignoring safety rules, overlooking maintenance or other negligence of those in management. While we are one of the largest firms in Illinois dedicated solely to the representation of injured workers, we pride ourselves on the personal, one-on-one approach we deliver to each client.
Work accidents can cause serious injuries and sometimes permanent damage. Some extremely serious work injuries can permanently hinder a person’s ability to get around and continue their daily duties. Factors that affect one’s quality of life such as place of work, relationships with friends and family, and social standing can all be taken away quickly by a work injury. Although, you may not be able to recover all of your losses, you may be entitled to compensation as a result of your work injury. Krol, Bongiorno & Given, LTD. provides informed advocacy in all kinds of workers’ compensation claims, including:
• Injuries to the back and neck, including severe spinal cord injuries
• Serious head injuries
• Heart problems resulting from workplace activities
• Injuries to the knees, elbows, shoulders and other joints
• Injuries caused by repetitive movements
For Illinois Workers’ Compensation claims, you will ALWAYS cheat yourself if you do not hire an experienced attorney. When you hire Krol, Bongiorno & Given, Ltd, you will have someone to guide you through the process, and when it is time to settle, we will add value to your case IN EXCESS of our fee. In the last few years, employers and insurance carriers have sought to advance the argument that when you settle a case without an attorney, your already low settlement should be further reduced by 20% so that you do not get a “windfall.” Representing yourself in Illinois is a lose-lose proposition.